Article 478(3)(a) and (b) of Regulation (EU) No 575/2013: Applicable percentages for deduction from Common Equity Tier 1 of significant investments in financial sector entities and deferred tax assets that rely on future profitability
Article 19
1. For the purposes of Article 478(1) of Regulation (EU) No 575/2013, the applicable percentage for the purposes of Article 469(1)(a) and (c) of that Regulation shall be: (a) 60 % during the period from 1 January 2016 to 31 December 2016; (b) 80 % during the period from 1 January 2017 to 31 December 2017; (c) 100 % from 1 January 2018. 2. For the purposes of Article 478(2) of Regulation (EU) No 575/2013, the applicable percentage shall be: (a) 60 % during the period from 1 January 2016 to 31 December 2016; (b) 80 % during the period from 1 January 2017 to 31 December 2017; (c) 100 % from 1 January 2018. 3. By way of derogation from paragraph 2, where, pursuant to Article 478(2) of Regulation (EU) No 575/2013, national law provides for a 10-year phase-out period, the applicable percentage shall be: (a) 40 % during the period from 1 January 2016 to 31 December 2016; (b) 60 % during the period from 1 January 2017 to 31 December 2017; (c) 80 % during the period from 1 January 2018 to 31 December 2018; (d) 100 % from 1 January 2019. 4. Paragraphs 2 and 3 shall not apply to credit institutions which, at the date of entry into force of this Regulation, are subject to restructuring plans approved by the Commission. 5. Where a credit institution falling within the scope of paragraph 4 is acquired by or merges with another credit institution while the restructuring plan is still in operation without modification concerning the prudential treatment of deferred tax assets, the exception in paragraph 4 shall apply to the acquiring credit institution, new credit institution resulting from the merger or credit institution incorporating the original credit institution, to the same extent that it applied to the acquired, merged or incorporated credit institution. 6. The ECB may review the application of paragraphs 4 and 5 in 2020 based on monitoring of the situation of those credit institutions. 7. In the event of an unforeseen increase in the impact of the deductions provided for in paragraphs 2 and 3 which the ECB determines is material, credit institutions shall be allowed not to apply paragraph 2 or 3. 8. Where paragraphs 2 and 3 do not apply, credit institutions can apply national legislative provisions. 9. This Article is without prejudice to national law in force prior to the entry into force of this Regulation, provided that such law sets percentages that are higher than those specified in paragraphs 1, 2 and 3.